Overview of Cryptocurrencies
In simple words, cryptocurrencies are the future medium of exchange wherein the coin ownership records are stored in a decentralized ledger that follows the blockchain technology. Cryptocurrencies are internet-based virtual currencies that are encrypted by cryptographic functions to secure various financial transactions. Investing in cryptocurrencies is a good investment, but then there are huge risks associated with it owing to the high volatility of crypto assets.
Crypto assets can be sent directly between two parties via the private and the public keys. One needs to download a crypto wallet to store his cryptocurrencies. Transfer of crypto assets between two users can be settled instantly with the minimal processing fees that no other traditional financial institutions can provide. Also, the absence of any central authorities backing cryptocurrencies makes them immune to government interference. It is the only medium of exchange in existence wherein an individual’s account is held by himself, and unless he shares the private keys of his crypto wallet to others, his fund is safe. Hackers cannot embezzle crypto coins because each coin is encrypted and secured by the immutable blockchain technology. It is more of a peer-to-peer network where each peer has a complete record of all transactions and account balances, thereby making it difficult for anyone to be immune to any transactions.
There are more than 6500 cryptocurrencies altogether that are traded publicly nowadays. Bitcoin, Ethereum, Tether, XRP, Bitcoin Cash, Litecoin, etc. are the most popular names according to market capitalization.
What is Bitcoin?
Bitcoin is the first decentralized cryptocurrency that was released in 2009 as an open-source software but captured the crypto market as the most widely used cryptocurrency. Using Bitcoin as a medium of exchange has the following benefits over fiat currencies.
Advantages of using Bitcoin
The advantages of using bitcoins are manifold.
1) User autonomy
This is one of the unique features that bitcoin users enjoy. Bitcoin users enjoy full autonomy on their money, and the government by no means can freeze the user’s money, which gives them the liberty to use their coins in whatever ways they want.
2) No Charge Backs
Bitcoin transactions cannot be traced back to the users unless they share their wallet address with anyone. This helps in protecting the users’ money, as no one except the wallet owner will know how many coins he has, thereby securing his coins efficiently. Also, with bitcoins, the transactions cannot be reversed, and so there are also no risks when one receives bitcoins.
3) No taxes
As there is no viable way to intercept bitcoin transactions, no taxation system can be implemented in bitcoin transactions unless a bitcoin holder voluntarily pays a percentage of his income as tax. But who would be so benevolent to pay tax unless it is mandatory?
4) Not affected by Inflation
Bitcoin transactions are not affected by inflation, which occurs when a nation’s government issues more money over a year, thereby decreasing the purchasing power of the people. As the bitcoin system was created with the sole motive of being finite, there does not arise any situation to issue excess currency. Thus, the threat of inflation is negligible on bitcoin transactions. This negligible inflationary pressure benefits both the bitcoin buyers and sellers.
5) Lower transaction fees
Bitcoin payments involve very less transaction fees as compared to traditional banking transactions.
How Coinitix Helps You to Buy Bitcoin in the Easiest Way?
Coinitix offers a robust platform to buy bitcoins securely. The platform provides high payouts and commission to the users. Signing up on the exchange is free, and the users can follow an easy user interface to start trading through this exchange. Coinitix offers the best exchange rates to its users and allows them to buy bitcoin with their credit cards.
Most platforms do not allow their users to use their credit cards as allowing credit cards always has the risk of embezzlement; there is always a headache of money recovery. At Coinitix, users can conveniently use their credit cards to purchase bitcoins.
Using credit cards to buy Bitcoins also reduces the risk of fraud as credit card transactions are instantly settled without giving much time to the hackers to plan any misdeeds.